In manufacturing, producing finished goods might result in Scraps and/or shrinkages. Normally scraps are materials that are left over after production and using them again might be not possible or it could be wasted material. On the other hand, shrinkages are reductions in the product/material due to evaporation, deterioration, …etc.

In Sage X3, it is possible to add scraps to the Bill of Materials "BOMs" lines. Also, it is possible to account for shrinkages by adding percentages to the Product-site and/or Routings.

In Common data, BOMs, Production BOMs, the scrap can be entered on the component line as a percentage. This setup corresponds to loss related to the material that is used to produce the finished goods. However, the time lost is not recorded. For the scrap on the BOM to be considered, the "Shrink with release" parameter must be checked on the Product-site, Manufacturing tab.

When working with shrinkages, in Common data, Products, Product-site, setting up shrinkage percent on the Planning tab for the finished goods can be useful especially if the planned loss of the material is the same for all components. Once a percentage is entered, it is linked to the Apply % loss that is found in Common data, Product tables, Reorder policy as long as that box is checked. If the Apply % loss check box is selected, the suggested quantity will increase to allow for the loss. 

To accommodate for the material loss in the production process, shrinkage can be entered in the Routing management, Operations tab for each line. The Shrinkage in % can be entered on the Work center too. 

When a work order is created for a released quantity of 10, the % loss will show on the Product released line.

On the Components tab, the Requirement qty. will increase by 10% to account for the 10% scrap, and on the Operation line, the Planned quantity and Run time have increased by 15 % to offset the shrinkage percentage.